The second isocost, where TC = $52,500, rests below the former isocost, where TC = $60,000. If we continue to find lower and lower levels of total cost that provide us with 1000 units of output, then we will clearly reach lower and lower points on the isoquant. Eventually, we can find a level of total cost that involves a tangency between the isocost and isoquant. This is pictured below at point A.
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